---
title: "22-173 Forge Island Redevelopment"
ocid: "ocds-h6vhtk-036b58"
canonical_url: "https://d3tenders.com/contract/?ocid=ocds-h6vhtk-036b58"
markdown_url: "https://d3tenders.com/contract/ocds-h6vhtk-036b58.md"
json_url: "https://d3tenders.com/contract/ocds-h6vhtk-036b58.json"
source: "Find A Tender Service"
current_stage: "Award"
buyer: "ROTHERHAM METROPOLITAN BOROUGH COUNCIL"
published: "2022-12-15"
---

# 22-173 Forge Island Redevelopment

Buyer: ROTHERHAM METROPOLITAN BOROUGH COUNCIL  
Current stage: Award  
OCID: ocds-h6vhtk-036b58

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## Summary

The Rotherham Metropolitan Borough Council has completed the procurement process for the "22-173 Forge Island Redevelopment" project. The project involves partnering with Muse Developments Limited to regenerate Forge Island through a new leisure development. The total construction cost is £33,949,000, with works including building construction, site preparation, cinema construction, and commercial building construction. The procurement method used was an award procedure without prior publication of a call for competition due to extreme urgency and the need to protect exclusive rights. A funding agreement was reached between the Council and Muse to secure project delivery by meeting key deadlines, such as the cinema completion requirement by 31 December 2022.

This tender opportunity for the Forge Island Redevelopment project offers significant potential for businesses in building construction, leisure facilities, and related sectors. It caters to firms experienced in site preparation, cinema construction, and commercial building development. The exclusive nature of the project due to the partnership between the Council and Muse Developments Limited means competition is limited. Businesses looking to contribute to the regeneration of Forge Island in Rotherham should consider this opportunity, which already has an active contract signed on 8th November 2022, with a total value of £46,805,627. The project's urgency and strategic importance make it a key initiative for interested parties seeking contract opportunities in the region.

## Notice

Rotherham Metropolitan Borough Council (Council) has entered into further agreements with its development partner, Muse Developments Limited (Developer) in respect of the regeneration of Forge Island, Rotherham through the development of a new anchor leisure development. This project forms a key part of the Council's town centre regeneration masterplan.

### Lot Information

Lot 1

The Council has entered into further contractual arrangements with its Developer to take the Forge Island development opportunity forward and realise the Council's aspirations for the site, within the context of challenging market and financing conditions. Additional information: For transparency, the total value of this procurement stated at II.1.7 (PS46,805,627) is made up of 2 contract sums as follows. PS2,910,847 is the cost of the enabling contract, with PS43,894,780 making up the remaining costs from the total value and form the Main Contract. The total construction cost is PS33,949,000. The total development cost of PS46,805,627 includes pre-construction costs, design marketing, professional fees, letting costs, tenant incentives and development management fees.

### Procurement Information

In 2018, following a competition to secure best value, Muse Developments Limited (Muse) was selected as the development partner to deliver the regeneration of Forge Island, Rotherham. The arrangement was not considered to constitute a public works contract for the purposes of the Public Contracts Regulations 2015. The project envisaged that Muse would secure external funding but allowed for alternative options, including for the Council to partially or fully fund the development to be considered. Due to unforeseen market conditions, particularly shifts in the gilt market, the external funding available to Muse for the delivery of this project has significantly reduced. The Council was notified of this issue on the 13 September 2022. Against this backdrop, the Council has entered into a funding agreement with Muse to fund and retain the project and will take market standard security relating to this funding, including an obligation on Muse to develop in accordance with an agreed specification. The Council considers that the project is strictly necessary as a key part of the Rotherham Town Centre Masterplan and that acting as funder was the only reasonable option to secure delivery of the project (there being no alternative funding options available within a reasonable timescale or within a cost that would make the scheme viable) and considers that this proposal will secure best value for the Council. Maintaining the current programme is essential to enable satisfaction of existing contractual obligations with tenants. There was therefore an imperative to act urgently for the following reasons: - The scheme is anchored by a cinema, which has a date for satisfying conditionality of 31 December 2022. The scheme will no longer be viable if the cinema agreement falls away, setting delivery back likely in excess of 2-3 years and jeopardising the entire delivery of the scheme. Recent developments in the cinema market indicate that identifying a replacement would be very challenging. - Construction costs for the project had been tendered and fixed for a very limited period. Re-tendering of the construction works would add substantial additional inflationary cost and risk, threatening the viability of the project. Muse is in an exclusive position as it has developed designs, fully tendered and costed the scheme and has secured pre-lets with various occupiers meaning that competition would be absent for technical reasons. These designs and arrangements with occupiers, which are dependent on the agreement with the cinema proceeding, are exclusive rights that require protection. Given the complex nature of the project, and the extreme urgency described above, the Council considered that there was not sufficient time to conduct a new procurement procedure. The Council considered an accelerated procurement, concluding that it would be pointless as it would not allow bidders the opportunity to assemble a meaningful costed proposal or to secure deliverable agreements with end users. The Council therefore considered that it was permitted to utilise the negotiated procedure without prior publication on the basis of exclusive rights as a result of competition being absent for technical reasons (as provided for in Regulation 32(2)(b)(ii)) and, or in the alternative, on the basis of urgency (as provided for in Regulation 32(2)(c)). On the 26 September 2022, the Council published a F15: Voluntary Ex-Ante Transparency Notice (VEAT) (notice reference: 2022/S 000-026834) setting out its intentions.

## Key Details

| Field | Value |
| --- | --- |
| Publication source | Find A Tender Service |
| Latest notice | https://www.find-tender.service.gov.uk/Notice/035482-2022 |
| Notice type | Award Notice |
| Procurement type | Standard |
| Procurement category | Works |
| Procurement method | Limited |
| Procurement method details | Award procedure without prior publication of a call for competition |
| Tender suitability | Not specified |
| Awardee scale | Large |
| All stages | Award |

## Dates

| Field | Value |
| --- | --- |
| Publication date | 15 Dec 2022 |
| Submission deadline | Not specified |
| Future notice date | Not specified |
| Award date | 25 Sep 2022 |
| Contract period | Not specified |
| Recurrence | Not specified |

## Values

| Field | Value |
| --- | --- |
| Tender value | Not specified |
| Lots value | Not specified |
| Awards value | Not specified |
| Contracts value | £93,611,291 |

## Status

| Field | Value |
| --- | --- |
| Tender status | Complete |
| Lots status | Cancelled |
| Awards status | Active |
| Contracts status | Active |

## Buyer

| Field | Value |
| --- | --- |
| Main buyer | ROTHERHAM METROPOLITAN BOROUGH COUNCIL |
| Locality | ROTHERHAM |
| Post town | Sheffield |
| Postcode | S60 1AE |
| Country | England |
| ITL 1 | TLE Yorkshire and The Humber |
| ITL 2 | TLE3 South Yorkshire |
| ITL 3 | TLE34 Rotherham |
| Local authority | Rotherham |
| Electoral ward | Boston Castle |
| Westminster constituency | Rotherham |
| Delivery location | TLE31 Barnsley, Doncaster and Rotherham |

## Supplier

| Field | Value |
| --- | --- |
| Number of suppliers | 1 |
| Supplier names | MUSE DEVELOPMENTS |

## CPV Codes

### Divisions

- 45 - Construction work

### Codes

- 45100000 - Site preparation work
- 45210000 - Building construction work
- 45212100 - Construction work of leisure facilities
- 45212150 - Cinema construction work
- 45212170 - Entertainment building construction work
- 45212171 - Entertainment centre construction work
- 45212400 - Accommodation and restaurant buildings
- 45212410 - Construction work for lodging buildings
- 45212411 - Hotel construction work
- 45212420 - Construction work for restaurants and similar facilities
- 45212421 - Restaurant construction work
- 45213100 - Construction work for commercial buildings
- 45213312 - Car park building construction work
- 45213313 - Service-area building construction work
- 45300000 - Building installation work
- 45400000 - Building completion work
- 45500000 - Hire of construction and civil engineering machinery and equipment with operator

## Release History

- 15 Dec 2022 at 11:45 - Award - Award Notice - https://www.find-tender.service.gov.uk/Notice/035482-2022
- 26 Sep 2022 at 11:01 - Award - Award Notice - https://www.find-tender.service.gov.uk/Notice/026834-2022

## Notice URLs

- http://www.musedevelopments.com
- http://www.rotherham.gov.uk

## Provenance

This Markdown file is an alternate public rendering of the D3 Tenders contract record. The canonical page is https://d3tenders.com/contract/?ocid=ocds-h6vhtk-036b58. The underlying structured data is available as OCDS JSON at https://d3tenders.com/contract/ocds-h6vhtk-036b58.json.